Some brokers offer PayPal because it is considered a trusted e-wallet company with high-quality services and many internet users are already familiar with it. Among those brokers are FxPro and eToro.
Each broker imposes different policies regarding the PayPal service. FxPro for example, would charge the clients a deposit fee of 2.7% and a processing time of at least 10 minutes, whereas for withdrawal, it is free of commission but takes at least 1 working day to process.
All brokers regulated by the CFTC can be verified through the National Futures Association (NFA) website. You can search for a specific company by inputting its business name, usually found at the bottom of a forex broker's homepage.
If you are trading with a multi-licenses forex broker, then you could take it easy. Your broker most likely only seeks VFSC licenses in order to smooth their international operation, while providing services in accordance with higher requirements set upon by better regulatory agencies.
There's a significantly different consideration if you are trading with a single-license forex broker (and the license in question comes from VFSC). It is possible to trade with them for some time with minimum capital, but it is not advisable to continue working with them in the long term. Do yourself a favor by moving your funds to better-regulated forex brokers.